Economists and lawyers discuss impact of anti-Russia sanctions on Armenia

The Western sanctions imposed against Russia will become tangible for Armenia, as the countries have close trade relations, the Armenian lawyers and economists interviewed by the "Caucasian Knot" have pointed out.

According to Aikaz Fanyan, an economist, part of the correspondent accounts of banks in Armenia are in Russian banks, and when these accounts are not serviced, Armenian banks will have problems.

In terms of transfers, Armenia will also suffer losses, he did not rule out. "As a result of the sanctions imposed on Russia, many enterprises will close, jobs will be cut, unemployment will increase, which will greatly limit opportunities for Armenian labour migrants. Families that live on transfers from Russia will suffer," Mr Fanyan believes.

If this situation continues for a long time, it will have a very negative impact on the Russian economy, which will lead to a reduction in efficient demand in Russia, Tatul Manaseryan, an economist, believes. "This means a reduction in local production and unemployment. This will automatically reduce Armenia's exports to Russia," he said, adding that in Armenia, not only large and medium-sized exporting enterprises, but also ordinary farmers and peasants won't survive without the support of the state.

Sanctions against Russia will directly affect Armenia, because Russia is the largest market for Armenian goods; and the purchasing power of this market is falling, said Ara Papyan, a political analyst and the head of the "Modus Vivendi" Research Centre.

This article was originally published on the Russian page of 24/7 Internet agency ‘Caucasian Knot’ on March 2, 2022 at 08:30 am MSK. To access the full text of the article, click here.